Top 10 Steps for a Successful FPM Implementation, Part 1 | Ep. 2

Unknown Speaker

All right, welcome everyone to FP&A Done Right, your shortcut to financial planning and analysis insights for the Office of Finance. I'm Ethan, and I'm joined by Emma today.

Emma

Hey, Ethan! Thanks for having me. You know, we're diving into something today that's pretty crucial to what our listeners in finance deal with day in and day out. We're talking about financial performance management, or FPM as we'll call it.

Unknown Speaker

Yeah, sounds good. And we're really excited because the insights we're tapping into for this deep dive come from a company celebrating a pretty big milestone. Revelwood's hitting their 30th anniversary. That's three decades of designing and building FPM solutions, so we've got a lot of expertise to draw from.

Emma

Absolutely. And to mark this anniversary, they've actually put together a 10-step guide to successful FPM implementation based on all those years of experience. And over the next couple of deep dives, we're gonna unpack that guide for you.

Emma

That's right. Today, we're tackling the first five of those crucial steps. And, I mean, let's face it—you're under pressure out there, right? The economic climate is demanding finance teams provide analytical insights to drive strategic decisions and maximize value for your business.

Emma

For sure. And so often, I'm sure you're fighting this battle with data that's all over the place. Scattered across different systems, tied up in spreadsheets that are, you know, prone to errors. So more effort is spent just getting the numbers right than actually using them to guide the business forward.

Unknown Speaker

Right. That's the promise of FPM solutions, right? It's kind of like—okay, let me try this analogy—managing your own finances with a shoebox full of receipts and a dozen different spreadsheets versus using an app that automatically pulls in all your accounts and gives you those real-time insights. You know, like one of those budgeting apps. It's the same idea. FPM does that for your business. It integrates planning, reporting, analytics, all into one platform to create that single source of truth and free your teams up for more strategic work.

Emma

So it sounds ideal, right? Like, why wouldn't you do this? But here's a bit of a sobering statistic that Revelwood points out: over 40% of FPM initiatives don't quite live up to expectations or they straight up fail.

Unknown Speaker

Yeah, 40%. That's a big number. And it makes sense, right? These are complex projects—they involve technology, processes, and people across your entire organization. It's a big undertaking. So nailing that implementation is absolutely critical. That's where this deep dive and Revelwood's 10-step guide come in.

Emma

Exactly. We're gonna give you a concentrated look at those first five key steps that they've identified. Think of this as your cheat sheet to understanding those foundational elements that can make or break the success of your FPM projects.

Unknown Speaker

Okay, so let's unpack step one: get an executive sponsor. This may seem obvious at first glance, like you need someone high up to support your project, but Revelwood really hammers this home about how vital it is to have a powerful and committed executive championing your FPM project.

Emma

Yeah, it's more than just a name on the project charter. FPM implementations demand strong leadership to get through the organizational complexities. You need an executive sponsor who commands respect, who has influence at the highest level to shape the organizational culture and drive the project forward. Their level of involvement and their effectiveness is one of the strongest predictors of project success.

Unknown Speaker

So, no sponsor—or a low-level sponsor—and you're at a high risk of failure. And it's not just about having a sponsor, it's about having the right sponsor. Someone high enough up who can make those key decisions, and really someone who has a stake in the problem your FPM project is supposed to solve.

Emma

Exactly. So if you're listening out there, think about who in your organization has both the authority and that burning need for this to succeed. That's your target. Because as Revelwood points out, an executive sponsor with power can drive processes and make necessary changes to channel the success of the project. Without that level of influence, you could really get bogged down in all the red tape and resistance to change.

Unknown Speaker

Okay, makes sense. Let's move on to step number two: define the requirements. Revelwood actually calls this perhaps the most important step. They really emphasize that thorough preparation is key before you even start talking to any partners or launching the project. You don't want to figure out what you need as you're going. That's a surefire way to go over budget and blow your timeline.

Unknown Speaker

Okay, step four: take ownership. Now, this isn't about the technical details of the software. This is about your internal team stepping up, taking control of the project. Revelwood stresses that ownership from the start is crucial, starting with analysis and design and continuing through the whole life cycle.

Emma

You'll rely on your implementation partner at first for their expertise, but that shouldn't last forever. Taking ownership means having a clear process for knowledge transfer. While the consultants are still there, your team needs to be learning, asking questions, and understanding all the modules as they're implemented. The goal is for your team to become self-sufficient and really have command of the entire FPM environment.

Unknown Speaker

And Revelwood makes a great point about ownership when it comes to testing. They say, and this is so important, the single biggest ownership issue is testing. Do not wait till the project is complete before starting. If testing is done throughout development, you'll develop a better understanding of your FPM system. So you're not just checking for errors at the end, you're actively learning how the system works.

Emma

Exactly. Fostering a deeper understanding and a stronger sense of responsibility. And honestly, I've seen projects where lack of early ownership led to confusion and delays. People didn't know who was supposed to be testing what, or even how the system was supposed to work. It just slows everything down. So, yeah, start early, keep testing, and make sure your team is really in the driver's seat.

Unknown Speaker

All right, on to step five: communicate throughout the project. Now, this is fundamental to anything, but what's specific to FPM? Revelwood really stresses that a defined plan for communication is critical from the start, even before kickoff. Ongoing communication drives buy-in, keeps everyone informed, and improves efficiency.